TIPS Workshop Market Studies: Why and How To do them

Transcription

1 EPN Consulting Limited The European Professionals Network TIPS Workshop Market Studies: Why and How To do them Dr Ing Stefano Mainero Founder, CEO

2 Outline Short profile of EPN Consulting Limited A) Why do a Market Study? B) How to do a Market Study? C) Examples of Case Studies

3 Short Description of EPN Consulting Limited

4 Short Description of EPN Consulting Limited EPN Consulting was established in 2009 in London (UK) to enhance the high professional value that exists across the entire European continent. EPN Consulting is a threefold professional service: Innovative Network of Professionals, Consultancy and Business Hub.

5 Short Description of EPN Consulting Limited EPN Consulting is member of: ITS UK EEN - Enterprise Europe Network London FSB - Federation of Small Businesses EAI European Alliance for Innovation Italian Chamber of Commerce and Industry for the UK

6 A) Why do a Market Study?

7 A) Why do a Market Study? To understand: The Market itself! (rules, policies, maturity, etc.) Products/Services and their prices Competitors (type, location and size) Customers (groups/segments) Revenues (potential and forecast) Risks (potential and real) etc.

8 The 4Ps of Marketing

9 The 4Ps of Marketing updated

10 The 4Ps of Marketing converted into 4Cs 4 Ps Marketing Mix conversion focus 4 Cs Marketing Mix Product Consumer Price Cost Place Convenience Promotion Communication 4 Ps Marketing Mix 4 Cs Marketing Mix 1960s Devised in 1990s Product Focused on Customer / Client Tangible Type of Product Intangible Traditional Type of Management Modern

11 The 4Cs of Marketing

12 The SWOT Analysis

13 The SWOT Analysis for Transformation

14 B) How To do a Market Study?

15 B) How to do a Market Study? Do Market Research Marketing research can give a business a picture of what kinds of new products and services may bring a profit When you conduct marketing research, you can use the results either to create a business and marketing plan or to measure the success of your current plan. That's why it's important to ask the right questions, in the right way, to the right people. Research done poorly can steer a business in the wrong direction!

16 B) How to do a Market Study? Primary Market Research (I) The goal is to gather data from analysing current sales and the effectiveness of current practices. It also takes competitors' plans into account, giving you information about your competition. Interviews (either by telephone or face-to-face) Surveys (online or by mail) Questionnaires (online or by mail) Focus Groups gathering a sampling of potential clients or customers and getting their direct feedback

17 B) How to do a Market Study? Primary Market Research (II) Some important questions to ask: What factors do you consider when purchasing this product or service? What do you like or dislike about current products or services currently on the market? What areas would you suggest for improvement? What is the appropriate price for a product/service?

18 B) How to do a Market Study? Secondary Market Research The goal of secondary research is to analyse data that has already been published. You can identify competitors, establish benchmarks and identify target segments. Your segments are the people who fall into your targeted demographic, people who live a certain lifestyle, exhibit particular behavioural patterns or fall into a predetermined age group.

19 B) How to do a Market Study? Common Marketing Mistakes 1/3 - Using only secondary research Relying on the published work of others doesn't give you the full picture. It can be a great place to start, of course, but the information you get from secondary research can be outdated. You can miss out on other factors relevant to your business..

20 B) How to do a Market Study? Common Marketing Mistakes 2/3 - Using only web resources When you use common search engines to gather information, you get only data that are available to everyone and it may not be fully accurate. To perform deeper searches while staying within your budget, use the resources at your local library, college campus or business centres..

21 B) How to do a Market Study? Common Marketing Mistakes 3/3 - Surveying only the people you know It s often the case of SMEs. Small-business owners sometimes interview only family members and close colleagues when conducting research, but friends and family are often not the best survey subjects. To get the most useful and accurate information, you need to talk to real customers about their needs, wants and expectations..

22 B) How to do a Market Study?

23 B) How to do a Market Study? Market Segmentation In the 1950s market segmentation strategy was based purely on demographic characteristics such as age, geographic location or gender. As information technology evolved in the 1970s, so did the marketer s ability to gather more insight into their customer base, giving way to new methods of segmentation that not only included demographic data but psychographic data too. In the 1980s, companies discovered needs-based segmentation. This approach was made possible by powerful computers and sophisticated clustering techniques, which allowed researchers to classify customers into segments based on what product features and benefits were most appealing.

24 B) How to do a Market Study? Market Segmentation Criteria They must be chosen carefully. Segmentation is a must for products/services and needs to be targeted to a specific market. Market segments need to satisfy the following five market segmentation criteria: Measurable The size of the segment must be in numbers, the purchasing power of the segment and the characteristics of the segment must be measurable in numerically.

25 B) How to do a Market Study? Market Segmentation Criteria They must be chosen carefully. Segmentation is a must for products/services and needs to be targeted to a specific market. Substantial The segment must be a homogeneous group, with similar characteristics. Factors such as age group, brand perception and other factors. The segment must be large enough to tailor marketing effort. Accessible The targeted segments need to be accessible. The targeted segment must be served well, locations need to be chosen carefully.

26 B) How to do a Market Study? Market Segmentation Criteria They must be chosen carefully. Segmentation is a must for products/services and needs to be targeted to a specific market. Differentiable Different segments must be differentiated, they must react differently to different campaigns or products, and different marketing tools would be used to target these audiences. Actionable The segment must be devised in such a way that it results in an action, this could be a buying behaviour. The segment must have practical value; the marketing effort must result in an action.

27 B) How to do a Market Study? Customers analysis Differentiate B2B and B2C Focus on segmentation Use analysis techniques properly (desk v field)

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29 B) How to do a Market Study? Competitors Analysis Product and market share (locally, nationally, internationally, ) Market positioning Product strategies Short-term and mid-term plans Alliances and M&A SWOT Analysis (comparison) Reputation (inc. online) etc.

30 B) How to do a Market Study? Risk Analysis and Mitigation Risks Identification and related Impacts (matrix) Probability of occurrence (likelihood) Risks Mitigation strategy, Plan B, and related costs

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33 C) Examples of Case Studies Case Study No. 1 - The SEGMENT Project - SEGMENT is a 3-year IEE (Intelligent Energy Europe) STEER (transport) funded project which will test the use of consumer market segmentation techniques in persuading people to change their travel behaviour and adopt more energy-efficient forms of transport. This project aimed to maximise the impact of the campaigns through the use of two segmentation techniques: 1) Targeting consumers undergoing life change moments which cause them to question and reconsider their travel habits. 2) Clustering these consumers (through the use of detailed questionnaires) into relatively homogenous groups (in terms of their attitudes towards car use, cycling, electric vehicles or wider issues such as climate change and health etc.) and then devising bespoke campaigns which are informed by these findings.

34 Case Study No. 2 The Multi-modal travel card

35 C) Examples of Case Studies Case Study No. 3 Electronic Toll Service (ETS) v European Electronic Toll Service (EETS)

36 THANK YOU FOR YOUR ATTENTION Dr Ing Stefano Mainero Tel EPN Consulting Limited Portland House, Stag Place LONDON, SW1E 5RS United Kingdom